Organic Demand in America

"All the attention on ethanol and $3.50 corn prices probably has slowed the move of acres into organic production, but it has not slowed the demand for organic goods or the prices paid to organic producers in the state.

"We're seeing record highs being paid for organic corn", says Kathleen Delate, who heads the organic program at Iowa State University. She says the price ratios between conventional corn or soybean prices and organic corn or soybean prices have stayed steady.

That translates into prices in the vicinity of $10 a bushel for organic corn and $17/bu. for organic soybeans. That's right, $10 corn and $17 beans. What's more, Delate says, yields for organic corn and beans are getting better. Test plots recorded 209-bu. organic corn and 65-bu. organic beans in Iowa in 2007.

All of that means farmers who are producing those organic crops, as well as organic fruits and vegetables, are doing well right now. But, the rising costs for land and other inputs, as well as the profits to be made producing non-organic crops, has kept organic acreage from rising much in the past two years."

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